Latvia: Support for proposal on reduction of VAT on fresh veg, berries and fruits

The Latvian government has shown support to the proposal for the introduction of a reduced value-added tax (VAT) for fresh fruits, berries and vegetables, according to the Ministry of Agriculture.

The amendment would facilitate the enforcement of a reduced VAT rate for typically Latvian fresh fruits, berries, vegetables and potatoes that can be washed, chopped, sliced ​​and packaged, but not for those thermally or otherwise processed, such as frozen, salted or dried products.

In order to avoid any ambiguity, a new appendix has been prepared for the law, listing the fruits, berries and vegetables for which a lowered 5 percent VAT rate would apply from next year, the Ministry said.

The reduced rate is planned to be introduced for the period from 1 January 2018 to 31 December 2020.

The bill "Amendments to the Law on Value Added Tax" has yet to be approved by the Saeima.


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